One of the leading companies in the industry, International Game Technology (IGT), published its financial report, which demonstrated a net profit decrease compared to 2023. However, the revenue was $4.31 billion (£3.37bn/€3.94bn), which represents a growth of 2.0%, following a recorded $4.23 billion in 2023.

Successful year and plans for 2024

Global Gaming and PlayDigital businesses were major reasons for the increase in revenue, while Global Lottery’s results dropped down. However, the lottery business performed better in Q4 than was the case during the whole year, following the success of other departments.

Vince Sadusky, the company’s CEO, commented: “We delivered a strong finish to the year in the fourth quarter, propelling full-year 2023 profits to record levels. A compelling array of products and solutions fuelled broad-based momentum in key performance indicators, driving margin improvement across our Global Lottery, Global Gaming, and PlayDigital segments.”

IGT conducted a restructure in February when Global Gaming and PlayDigital merged with another industry giant, Everi. The operations in total cost $6.20bn. IGT will own a majority of shares, 54%, while Everi will possess 46%. The merger is expected to be finished by the end of 2024 or at the beginning of 2025 when Everi will be renamed.

Sadusky said: “We believe the recent determination to split the business and create separate lottery and gaming pure-play companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders.”

Revenue growth

In the past year, IGT’s revenue grew. Product sales revenue was incredibly high – $963 million, which is 11.2% higher than in 2022. However, service revenue decreased by 0.4%, so the company generated $3.35 billion.

Global Lottery was the main source of revenue in 2023, even though the decrease is noticed since it generated $2.53 billion in revenue in 2023. As the main reason for this drop, the company listed a sale of a commercial services business in Italy. If it remained part of the company, a growth of 6% would be recorded.

Global Gaming also achieved significant growth since its operations increased by 9.1% to $1.55 billion. PlayDigital’s revenue also increased by 9.1% to $228 million, which broke the record when it came to this division.

The operations cost $3.31 billion, and services were $1.63 billion. However, non-operating costs increased to $372 million, which is 11.7% higher than in 2023. This means that the profit before paying taxes was $629 million, which represents a 6.8% increase compared to the year before. The company paid $322 million for taxes and $151 million for non-controlling interests, so the net profit was $156 million, which is $156 million lower than in 2022 when the profit was $275 million, so a decrease of 43.3% is recorded. But despite that, adjusted EBITDA was $1.78 billion, which is an increase of 6.9%, and hit the record when it comes to this figure.

Max Chiara, the company’s CFO, said: “We achieved all of our financial goals in 2023. Robust cash generation funded incremental investments in the business and shareholder returns, while driving leverage to historically low levels, putting IGT in a strong financial position as we enter 2024. This gives us confidence in further expanding our investment in the business to fund future growth.”

Source: Fletcher, Robert. “Net profit dips despite revenue growth at IGT in 2023”. iGaming Business. March 12, 2024.

The post Despite Revenue Increase, IGT’s Net Profit Drops Down appeared first on Keno Wizard.

Red Rock Resorts, a casino and hospitality company, published its Q2 report for the three months ended June 30.

The company reported a very slight year-on-year drop in net revenues from $422.2 million in Q2, 2022, to $416.1 million in Q2, 2023. Net income, on the other hand, skyrocketed by a whopping 130.9% to $74.9 million. For reference, the net income for Q2, 2022, was only $32.4 million.

Adjusted EBITDA for the period sat at $175.3 million in Q2, 2023, which translates to a 7.2% year-on-year decrease from last year’s $188.9 million.

Red Rock Resorts also published data concerning its performance in Las Vegas, highlighting $412.6 million in net revenues from its operations in the city. Although the figure represents a 1.8% drop, it shows that the company’s Vegas business still constitutes the majority of its revenues.

The operator’s adjusted EBITDA from its Las Vegas operations was $193.1 million for the second quarter of 2023. This is a 7.1% year-on-year decrease from the $207.8 million recorded in Q2, 2022.

In February, Red Rock Resorts also published its FY 2022 results, following its mixed Q4 report. Despite the headwinds, the full-year report was satisfactory. The company attributed its favorable results to its robust business model and adamant discipline.

Red Rock Pays Dividends to Stakeholders

Red Rock Resorts disclosed that its cash and cash equivalents on June 30, 2023, were $100.9 million. The company also reported that its total outstanding debt at the end of the second quarter was $3.2 billion.

In its announcement, the company said that its board of directors has declared a cash dividend of $0.25 per Class A common share for Q3, 2023. It will be payable on September 29 this year to all stockholders of record as of September 15.

Before the payment has taken place, Station Holdco will make a cash distribution to all unit holders of record (the company included) of $0.25 per unit. A total of $27.1 million will be distributed during the round, with around $15.6 million to be distributed to the company itself. The remaining money will be distributed to the other unit holders of record of Station Holdco.

On August 3, Red Rock Resorts hosted a conference call, discussing its financial results.

The post Red Rock Resorts Publishes Q2 Report, Highlights Strong Net Income appeared first on Keno Wizard.

In its first earnings call for the year, Sportradar registered strong growth across its revenue and adjusted EBITDA metrics. The company ended the three-month period on March 31, 2023, with a strong increase in its quarterly revenue, which was up 24% from the previous quarter, posting €207.6 million ($226.2 million), keeping its momentum from the fourth quarter of 2022.

Strong Financial Performance in the United States

The company saw the RoW betting segment account for 52% of its total revenue, which was up 25% at €108.5 million ($118.3 million). This segment was primarily driven by the performance posted in the Managed Betting Services and Live Odds verticals.

The quarterly profit stood at €6.8 million ($7.45 million), which was down from the €8.2 million ($8.98 million) reported in 2022, so a small decline, nevertheless. Sportradar’s adjusted EBITDA in the first quarter hit €36.7 million ($40 million), or an increase of 37%.

Sportradar similarly boasted a strong customer Net Retention Ratio that went up 120% in the first quarter of the year. The United States performed well for Sportradar during the quarter, with the results hitting €39.7 million ($43.3 million) during the reported period, or up by 55% from 2022.

Core betting data products and the ad:s product were largely tied to this regional success. There have been more costs and expenses during the period, however. For example, the purchased services and licenses in Q1 2023 increased to €48.4 million ($53 million), the company said.  Personnel expenses also went up in the first quarter to €77.5 million ($84.86 million). Another big expenditure was the total sports rights costs which stood at €51.2 million ($56.06 million) in the quarter.

Business Highlights and Company Successes

The company also remarked on some of its business successes over the past months, including the renewal of its partnership with Big Ten Network. The company successfully integrated its ad:s tech into Snapchat.

Sportradar also won a tender to become the Association of Tennis Professionals (ATP) data and streaming rights owner. Sportradar also demonstrated its ability to safeguard sports from corruption, with the company’s UFDS Annual Report: Betting Corruption and Match-Fixing in 2022 report flagging as many as 1,212 suspicious matches across 12 sports and 92 countries, a 34% increase.

Not least, the company embarked on some executive changes with Gerard Griffin stepping in as its new chief financial officer.

The post Sportradar Retains Momentum in Q1 2023 as Net Profit Falls appeared first on Keno Wizard.